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Unformatted text preview: Food prices Take a Pause on Biofuels Yet the United States won't be able to just shut off the corn ethanol spigot; billions of dollars have been invested in increasing U.S. ethanol capacity nearly fourfold since 2001. Reversing that policy would not only cause trouble in the Farm Belt; it would cut off an important source of fuel. The International Energy Agency estimates that global production of biofuels met about one third of the 900,000-barrel-per-day increase in worldwide demand for oil. The current crisis is being caused by high and rising food prices, not a shortage of food. The solution is to improve access to food for poor people. Prices are rising because of increasing demand for food due to population growth, and increasing oil prices and their impact on the cost of food production, processing and distribution. Several factors contributed to the rapid spike in global food prices, including increased consumer demand for food, oil, and energy supplies among emerging markets such as China and India, leading to rising energy costs; lower crop yields resulting from adverse weather...
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This note was uploaded on 01/10/2011 for the course MATH 101 taught by Professor Kara during the Spring '10 term at Baptist Americas.
- Spring '10